DöXA Group

Changes in supply and demand can change the price of a good or service. Typically, an increase in supply causes the price to fall, whereas an increase in demand causes the price to rise. Economists are often interested in estimating how much price changes are driven by supply or demand ‘shocks’. This was a particularly important question following the COVID-19 pandemic and the rise in inflation in many advanced economies – was this due to supply or demand factors? And depending on the answer, how should monetary policy respond? The contributions of supply and demand shocks can be estimated using econometric models. One popular approach requires making assumptions about how the economy works and one of these assumptions is that supply curves are upward sloping and demand curves are downward sloping (‘sign restrictions’). There is general agreement that this assumption is correct, but it does not allow us to exactly estimate the contributions of shocks. Instead, it only allows us to say that the contributions lie within a range. Our researcher aimed to clarify what we can learn about the contributions of shocks to price changes when making assumptions about the slopes of supply and demand curves. Read the paper to learn more: https://bit.ly/3Mdkv9S Want to get to know our researchers? Check out our Researcher Profiles: https://bit.ly/3yK2IEb

Last week I had the privilege of being interviewed by James Wrigley for the Ensombl podcast. You can catch the podcast here: https://lnkd.in/gd_K3qqc We spoke about a number of things however what seems to have garnered interest was the marketing I do through various medical conferences. I have been contacted by a number of advisers and mortgage brokers since it aired wanting to chat about this topic. Whilst I would love to speak to everyone individually this is not feasible. Instead I will over the coming weeks give some insight into what I do and more importantly what I have learnt not to do. If there is enough interest I may host a webinar. So to kick it off here is 1 tip for what to do and what not to do: TO DO - It costs a considerable amount to exhibit at conferences. For medical events it can be $8,000 for just an empty 3m x 3m space. If you're going to spend this amount on an event together with staff and potential accom and flight costs then it's worth going the extra mile in the design of your exhibit space in terms of experience and/or give-away. Don't settle for plastic water bottles! NOT TO DO - Don't stand behind your table at your booth, it's an uneccesary barrier between you and the people you want to engage with. And just to add to this one, don't be staring at your phone when delegates are roaming around the room. I hope this is helpful!

Last week, academics and practitioners attended a workshop hosted by the RBA to discuss recent developments in Quantitative Macroeconomics. The papers from the workshop are now available on our website – https://bit.ly/3v7PI9o

22 Lessons I've Learned About Money: 1: The more complicated the investment advice, the less useful it is. 2: Get rich quick and get poor quick are two sides of the same coin. 3: Time is a scarcer resource than money. 4: Always ask about anything you don't understand. 5: A house is a place to live, not an investment. 6: Admire people who earn more than you, not people who spend more than you. 7: Your mortgage broker is lying to you about how much house you can afford. 8: Financial success is 5% intelligence and 95% discipline. 9: Lifestyle creep is real. A 10% raise in income shouldn't mean a 10% raise in lifestyle. 10: Ignore all forecasts. 11: Reaching for yield is always a mistake 12: Fees & taxes erode performance. Minimize both. 13: Watching financial news doesn’t count as research or improve your returns 14: Never pay interest to acquire something that loses value. 15: Investments in your personal earnings power pay the highest return. 16: A dollar saved is two dollars earned. 17: The quality of your life is a better benchmark than the S&P 500. 18: Market corrections are perfectly normal. Expect them. 19: Compound interest is the most powerful financial force in the world. 20: You don't have to be rich to invest, but you have to invest to be rich. 21: Infrequent splurges are a great use of money. 22: Don't compare yourself to others. Compare yourself to who you used to be. What would you add to this list? I'd love to know! *** P.S. Want to understand how the stock market works (for free)? Enroll in my 5-day email course: https://lnkd.in/eBUBw8Fb Each day, I'll email you 1 lesson that demystifies the stock market. I'll explain what the stock market is, how it works, and how to get started investing. If you found this post useful, please repost ♻️ to share with your audience.